1、Ruralurban migration and wage determination: The case of Tianjin, China 1. Introduction Since the mid-1980s, mass labor migration from the countryside to urban areas has been one of the most dramatic and noticeable changes in China. Based on survey data from Tianjin, this paper examines the characte
2、ristics of migrants and compares the employment and social conditions of migrants with those of permanent urban residents. It also investigates the determinants that affect wages of both migrant and nonimmigrant workers in order to evaluate how economic and social-demographic factors contribute to t
3、he earning gap between rural and urban workers. The economic reform in China that started in 1978 has created a “floating population” as over 100 million people have left their villages and streamed into cities where manufacturing and businesses boom. The migration of labor from agricultural to non-
4、agricultural industries has increased the average income of rural people as migrant workers send a significant portion of their income back home. At the same time, rural migrant laborers have made great contributions to economic growth by complementing the labor force of cities and providing low-cos
5、t work. However, the benefits from economic growth have not been fairly shared between urban and migrant workers, and clear disparities exist in Chinas urban and rural labor markets. It is estimated that between 12 and 15 million non-farm jobs will be required annually just to absorb this surplus la
6、bor. Rural migrants generally make less money, receive far fewer benefits, and have no health insurance. Most live in precarious dormitories provided by their employers if they have any housing. Rural surplus laborers who moved to urban 金融危机下农民工就业问题分析 1 areas are called mingong to mark their differe
7、nce from the city-dwelling workers. Rural migrants are treated as strangers and outsiders in cities. They are denied formal urban membership and substantive rights and their children are largely prohibited from attending city schools. The urbanrural disparities in Chinas labor market may be categori
8、zed into two types. The first difference relates to productivity-related characteristics, such as education and job training, and the second relates to non-productivity-related characteristics, such as race, gender, or in our case, hukou status, which also could affect labor status. Discrimination i
9、s present if equally productive individuals within the same enterprise are treated differently simply because of their hukou status. In order to promote labor mobility and efficiency and to improve equality and social stability, it is important to first understand the motivations for migration and t
10、hen examine the conditions that migrants encounter. Why do farmers migrate to cities? What are characteristics of migrants? What factors determine wages? Are migrant workers discriminated in Chinas urban labor market? To answer these questions, a survey of employees was conducted from October to Dec
11、ember 2003 in Tianjin, one of the four central government municipalities in China. We found that, in addition to economic and social-demographic factors such as ownership of business, education, experience, and age, the restrictive hukou system has negatively influenced migrants income. This paper l
12、imits its discussions to migrant and non-migrant workers with migrant workers defined as those not having Tianjin hukou. 2. Ruralurban migration and wage determinants: a literature review Millions of people in the rural populations of the developing world confront the decision of migrating to urban
13、areas and every year； many find it worthwhile to leave their villages for cities. The 2000 population census data show that 金融危机下农民工就业问题分析 2 144.39 million rural residents in China, or 11.6% of the total population, moved into cities and towns, in 2000. The massive ruralurban migration since 1980 ca
14、n be broadly attributed to the huge surplus of rural labor, widening income and consumption disparities between rural and urban residents, and heavy taxation on the agricultural sector. The rapid expansion of Chinas rural labor force, improvement in production efficiency, and the continuing reductio
15、n of cultivated land have caused a larger portion of rural laborers to be underemployed or unemployed. In the early 1980s, the surplus of rural laborers was 70 million, or 18% of the entire rural labor force and this surplus grew to about 130 million, or 28% 10 years later. The widening income and c
16、onsumption disparity between rural and urban residents is clearly a factor contributing to increasing migration. In 1978, annual per capita disposable income was 2.6 times higher for urban residents than for rural peasants and, by 2001, that ratio increased to 2.9. Over the same time period, the rat
17、io of urban to rural consumption per capita increased from 2.9 to 3.5, demonstrating widening income and consumption disparities (NBSC, various years, 19942003). In addition, urban residents also enjoy various state-subsidies on food, education, employment, and medical services. The heavy tax burden
18、 on farmers also influences rural migration. Although the central government emphasized the importance of alleviating this burden, according to, local governments still tax a significant portion of farmers income. Even worse, the agricultural taxation is regressive. For example, in 1996, the tax rat
19、e was 16.7% for rural families with an annual income between 400 and 500 yuan, but only 2.8% for those with incomes of 2500 to 5000. The high tax on farmers income discourages investment in agricultural production, which also contributes to city migration. Table 1 lists major reasons why the rural laborers surveyed wanted to
